WK Kellogg has adjusted its annual sales and profit forecasts downward, reflecting a decrease in consumer demand for its premium-priced cereals like Frosted Flakes and Apple Jacks. The company disclosed a 6.2% drop in quarterly net sales totaling $663 million, with earnings coming in at 20 cents per share, underperforming analyst predictions, as reported by Reuters.

The shift in consumer behavior is partly due to a 3% rise in product prices that resulted in an 8.6% volume decline. Cost-conscious consumers are tightening their budgets in response to inflationary pressures and increased tariffs, leading to reduced spending on packaged foods.

Reacting to these challenges, WK Kellogg now expects full-year organic net sales to decline by 2-3%, surpassing the previous forecast of a 1% drop. The company's adjusted EBITDA is projected between $270 million and $275 million, down from earlier estimates of $286 million to $292 million. This situation isn't unique to WK Kellogg, as other major food companies like Kraft Heinz and Kellanova are grappling with similar headwinds from weakened consumer spending and economic slowdowns in the U.S.